DR. HJ.UMAR BIN HJ.

KASSIM
B. Sc. Hons Housing, Building & Planning,
M.Sc (Planning) &
PhD (Technology Management , Operation &
Logistic-Industrialised Building System)
EMAIL: umar@unimap.edu.my
Tel. No.: 04979 Ext. 8982 (Office)
019-4702258 (Mobile)
 Scope of Lecture
Level of Psbl.
Week Course Content Delivery Mode
Complexity Asmt.

Supply Chain in Industrialised Building System (IBS). (a)

DISCUSS the preliminary concepts, definitions, process related to IBS Lecture; C6:Evaluation (b)
Supply Chain from begining (factories) until to the construction site. (Dr Umar) A3
8-9 EXPLAIN alls the parties are involved in IBS Supply Chain Process,
highlight the issues and problems and explain the importance of
complited/perfect of supply chain process.
(6 hours)
Industrialised Building System (IBS): Issues & Problems – Effectiveness (a)
Of IBS Implementation For Malaysian Construction Industry. Lecture; C6:Evaluation (b)
Unfortunately, the used of IBS for building project in Malaysia is still (Dr Umar) A3
limited if compared to CIDB target. TO EVALUATE the effectiveness of
10-12 CURRENT IBS IMPLEMENTATION for Malaysian Construction Industry
through the measurement of acceptance level on the current IBS
implementation and also DETERMINATION OF THE EXISTING
PROBLEMS faced by construction Industry related to the IBS
implementation.
(9 hours)
Overviews Modern Method Construction (MMC)/ Industrialised
Building System (IBS) at Overseas Countries. Lecture; C6: Evaluation
OVERVIEW AND ANALYZE all the success factors of implementation of (Dr Umar) A3
Industrialised Building System (IBS) or Modern Method Construction
13-14 (b)
(MMC) at United Kingdom (UK), Japan and Australia, or any western
countries.

(6 hours)
15 MINGGU ULANGKAJI / REVISION WEEK
CREAT TWO WAY COMUNICATION’S IN CLASS
• EVERY CHAPTER (CHAPTER 1, 2 AND 3 WILL DISCUSS AND PRESENT IN
CLASS BASED ON FORUM FORMAT) BY SELECTED STUDENT (ONE)
FROM EACH GROUPS (TOTAL 8 GROUPS-EVERY GROUPS 10
STUDENTS)
• AFTER FORUM, LECTURER WILL CONDUCT LECTURE AND DOING
CONCLUSION CHAPTER BY CHAPTER.
CHAPTER 1: Supply Chain in Industrialised Building
System (IBS).
WEEK 8-9.
DISCUSS the preliminary concepts, definitions, process related to IBS
Supply Chain from begining (factories) until to the construction site.
EXPLAIN alls the parties are involved in IBS Supply Chain Process,
highlight the issues and problems and explain the importance of
complited/perfect of supply chain process.
(6 hours)
 INTRODUCTION
Industrialized Building Systems (IBS):
 The complete assembly construction: a construction system where
components are manufactured at factories on or off site, transported
and then assembled into a structure with minimum work.
 In which parts of buildings such as walls, slabs, beams and staircases
produced in the factory under quality control and then it is installed
on site. Industrial processes is an investment in equipment, facilities
and technology with the objective to maximize production, reduce the
human resources and improve the quality of work in which a building
system is defined as ten elements joined together to turn the
performance was designed for a building.
 Industrialised Building System (IBS)
• Industrialised Building System (IBS) is defined as a construction
technique in which components are manufactured in a controlled
environment (on or off site), transported, positioned and assembled
into a structure with minimal additional site work (Kamarul, 2011)
 Author/ Definition
Researcher

A construction system which components are manufactured in a

CIDB, 2003b factory, on or off site, positioned and assembled into structures with
minimal additional site work .

A system in which concrete components such as wall, floor slab,

Trikha, 1999 beam, column and staircase are mass produced at site or in factory
are assembled to form the structure with minimum in situ
construction.

A set of interconnected elements that joint together to enable the

Warszawski, designated performance of a building.
1999
 Author/ Definition
Researcher
IBS is a continuum beginning from utilizing craftsmen for every aspect of
Esa and construction to a system that make use of manufacturing production in order to
Nuruddin, 1998 minimize resources wastage and enhance value for end users.

A system which uses industrialized production techniques either in the production

Wardi, 1997 techniques either in the production of components or assembly of the building or
both.

IBS is a process by which components of a building are conceived, planned and

Junid, 1986 fabricated, transported and erected at site. The system includes a balanced
combination between software and hardware component. The software element
include system design, which is a complex process of studying the requirement of
the end user, market analysis and the development of standardized components.
SUPPLY CHAIN OF IBS

1. FACTORY

2. TRANSPORTATION

3. ASSEMBLE
 DEFINITION OF IBS SUPPLY CHAIN
(Akmal Aini Othman, 2010)
-"a network of companies are involved in activities that are complex
and diverse process, with the management of complex situations that
require coordination to improve the performance of the supply chain
about flow of information, services, finance and materials."
- “rangkaian syarikat-syarikat yang terlibat didalam aktiviti yang kompleks dan proses yang pelbagai, dengan
keadaan yang kompleks maka pengurusan memerlukan koordinasi bagi membaiki prestasi rantaian pembekalan
seperti kepada aliran maklumat, perkhidmatan, kewangan dan bahan-bahan.”
 TWO WAYS COMMUNICATION’S (FORUM)
TITLE : ISSUES AND PROBLEMS IN IBS SUPPLY CHAIN?
DISCUSS AND PRESENT.
Creat 2 groups (1 group 10 Students)-DONE
1. DOING LITERATURE REVIEW (FROM WEBSITE/JOURNAL) –
& DISCUSS IN GROUPS (30 MINUTES)- DONE
3. SELECT ONLY 1 STUDENT FROM 2 GROUPS (1X2 =2 Student’s) TO PRESENT &
DISCUSS IN FORUM FORMAT (WITH 1 MODERATOR), ONLY 1 SESSION (45
MINUTES).
8.15 am to 8.45 am : Forum Session- ON GOING
8.45 am -8.55 am Break.
8.55 am -10.00 am Lecture.
CHALLENGES ON THE IBS SUPPLY CHAIN MANAGEMENT
(THE CONSTRUCTION INDUSTRY)

Sumber: Pusat IBS

 Literature Review
• Supply Chain Management (SCM) involves the integration of three key
flows across the boundaries of the companies in a supply chain –
product/materials, information, and finance/cash whereas this concept can
be applied and focus to the management of construction activities on site
instead off-site.
• Successful integration or coordination of these three flows has produced
improved efficiency and effectiveness for companies. The key factors for a
successful implementation of SCM include inventory, cost, information,
customer service, and collaboration relationship management. Focusing on
the management of these factors is critical to the implementation of a
supply chain strategy.
(Mohd Nasrun Mohd Nawi, Angela Lee and Mohd Faizal Omar, (2014) A Review of Supply Chain Management Issues in Malaysian Industrialised
Building System (IBS) Construction Industry -Australian Journal of Basic and Applied Sciences ISSN:1991-8178.
 ISSUES AND PROBLEMS IN IBS SUPPLY CHAIN
• “the construction industry is still not rapidly embracing IBS. Fragmented
and disconnected construction supply chains are the leading causes of
limited uptake to IBS”. IBS supply chain requires close control of materials
and resource management to ensure continuity and timely delivery of
construction components at site. The supply chain is managed in a manner
that allows the contractors full control of the process with the intention to
improve efficiencies and competitiveness. The case companies involve
heavily in the production of IBS components and practices closed supply
chain system. To manage the supply chain, contractors need to adopt
partnering initiatives and embrace open collaborative environment. In
addition, Information Technology (IT) can be useful tool to support
collaborative supply chain and improve information flows.
Kamar and Zuhairi (2011)
 Problem Statement:
• Despite acknowledging its benefits, the construction industry is still not rapidly
embracing IBS. The construction industry is an established industry with many deep-
seated and culturally-embedded practices, so the introduction of anything perceived as
new or different faces barriers. Fragmented and disconnected construction supply chain
is one of the leading causes of the limited uptake to IBS (Hamid et al., 2008).
• The current state of the supply chain is underpinned by poor communication, adverse
relationships and lack of trust and commitment (Hong-Minh et al., 2001) and the
relationship between parties has been driven by the cost agenda (Wood and Ellis,
2005).
• These issues are attributed to the industry’s involvement in a variety of separate and
interdependent parties in the entire process. In general, contractors are organising
suppliers and subcontractors in vertical chains and playing them against each other in
search of the lowest short-term costs as a results of which the horizontal flow of
information between suppliers-particularly with regard to advances in productions
techniques-is blocked. It is also well known that IBS procurement process is slightly
different from conventional methods which include purchasing of materials in advance
before the actual site progresses (Whelan, 2008 and BSRIA, 1998).
 CONTINUE.. Problem Statement:
• In addition, the design of IBS construction project might requires designers to
consider the ease to fabricate and to install the components but the common
practice shows that contractors and manufacture of IBS components is involved
only after the tender stage of the value chain.
• This lack of integration among relevant players in the design stage has resulted
in a need for redesign and additional costs to be incurred if IBS is adopted
(Hussein, 2007 and Hamid et al., 2008).
• The adopters are also in need to integrate the key business processes in the
supply chain as a result of high demands on logistical activities in IBS
construction (Hong-Minh et al., 2001; Venables et al., 2004) and Goodier and
Gibb, 2004) and solve the problem related to complex interfacing between
systems and ensure efficient process sequences (Pan et al., 2007; Na, 2007; Na
and Liska, 2008; Haas and Fangerlund, 2002).
• Therefore, there is a desperate need of a new approach in supply chain to
improve IBS construction delivery system.
 DISCUSSIONS
• It was observed that the supply chain in IBS construction requires close
control of materials and resource delivery. The nature of the IBS
construction itself requires close integration and cooperation among
stakeholders with regard to the upstream and downstream relationship
of the project delivery system. Therefore, the case companies as
observed are not limiting its role as conventional contractor or assembler
but operate manufacturing facility owned by themselves or by their
holding company. The companies established themselves as a one-stop
centre for IBS providing a wide range of products and services from
design to installation with the capability of providing turnkey services.
The close system approach allows the companies to manage and control
their supply chain effectively.
 CONTINUE.. DISCUSSIONS
• There is also evidence that the case companies invest in and sometimes
invent systems and do not just depend on existing manufacturers. The case
companies or their subsidiaries play the role of designer, producer and
installer of an IBS proprietary system across the supply chain. There is
evidence that in-house production capability is a decisive factor for successful
project delivery. Unlike in the conventional project, an IBS contractor
operating without the manufacturing capability is required to purchase
components from other manufacturers and this has put away a huge amount
of the contract sum from them. As a result, the contractor was left to work
on a very thin profit margin. The price of components was also easily
manipulated by the suppliers. By acquiring manufacturing capability,
contractor can have control of the process and the profit/loss is more
predictable and can be adjusted accordingly across IBS projects embarked by
the company.
 CONTINUE.. DISCUSSIONS
• Although no official partnering agreement has been initiated in their supply
chain, companies still maintain good relationships and work in collaboration
with other manufacturers and suppliers who produce or deliver services and
products. A close relationship suppliers and sub-contractors from the earliest
project stages can be vital to ensure efficient and timely delivery of
components and services. This was previously highlighted in Malik (2006),
BSRIA (1998) and Pan et al., (2007) and Pan et al., (2008).
• Management of supply chain as observed in all cases, in fact requires very
careful definitions and management of interfaces between contractors and
suppliers and good communication channels. This includes attention to detail
from management during all stages of the supply chain, enabling correct and
timely information to be available. Company A developed and implemented a
comprehensive system to pre-qualify its subcontractors and suppliers which
determines only experienced and knowledgeable suppliers and subcontractors
to be selected.
 CONTINUE.. DISCUSSIONS
• Collaboration and joint venture agreement create opportunities for sharing knowledge
and new innovative ideas to be incorporated into new building systems of IBS in
Malaysia as in the case of Company A and Praton Haus. This has accelerated the
company’s learning curve. Although there are no direct transfers technologies to the
partner company, such partner could learns the transferred technology during
construction stage and later internalises the knowledge learned into their own
organisation. In Company B, collaborative practices has suited the company and a small
local firm in East Malaysia, allowing numerous opportunities to improve their conduct of
business such as wider diffusion of products without costly physical presence in the
markets, risk and reward sharing, resource pooling, reduction in the coordination and
transaction cost, ability to concentrate on core competency and rapid response to
market needs.
• However, appropriate supply chain training programs, especially skills to manage the
supply chain process, have been missing in each case company. Lack of initiatives in
promoting values throughout the value chain has also been recognised. It was also
observed that all case companies have yet to fully utilise Information Technology (IT) at
the maximum level where the utilisation was only limited to accommodate design
activities. IT tools have not been used in neither in logistics nor in the management of
supply chain activities.
 The Way Forward:
The following recommendations have been derive to assist
contractors in managing their supply chain:
a) To Adopt Partnering Strategies in Supply Chain:
Strategic partnering has suited both large and small firms allowing numerous opportunities to
improve their conduct of business such as wider diffusion of products without costly physical
presence in the markets, risk and reward sharing, resource pooling, reduction in the coordination
and transaction cost, ability to concentrate on core competency and rapid response to market
needs. Supply chain partnering is essential for construction to address the entire lifecycle of the
construction product and take account of not only primary functionality but also productivity,
buildability, serviceability and even recyclability. Supply chain partnering creates opportunities for
sharing knowledge and new innovative ideas to be incorporated. Supply chain partnering is
beneficial in implementing new and unfamiliar technological approach as in IBS. This factor is also
important to those industry players who are not familiar with the IBS method to merge with
experienced contractors through a partnering approach. The other factor is risk and profit sharing
amongst partners could be shared in a collaboration or partnership. The contractor can attempt to
own the prefabrication technology by devising a special relationship with one or more
prefabrication sub-contractors, such as project-based joint venture, vertical integration or even
internalisation. Supply chain partnering facilitates just in time delivery of material on site by
initiating upstream and downstream relationship between players. Without this, IBS projects may
not be able to be delivered on time, within the cost and at the stated quality.
 b) To Create IBS Cluster, Consortium and Integrated Team:
• The contractors might consider creating an IBS cluster or consortium of
integrated team by creating a partnership when and where it is needed. The
positive integration of supply chain has become a major factor in delivering
successful construction projects. The integrated team brings together a series of
different organisations consisting of IBS key players (client, designer contractor
and specialist manufacturer), which is linked by a flow of practices, information,
financial and contractual relationships. This is to allow them to work together
toward design and construction practices within the context of the project
procurement delivery arrangement approach with the same common goals and
objectives. The cluster or consortium integrates people, systems, business
structures and practices into a construction process and encourage horizontal
information flows. In contrast to the traditional construction practice, the team
members are demanded to work together in concurrently either in making a
decision process or when trouble arises throughout of design, fabrication and
construction phases. This approach will help to create a new environment within
which IBS can flourish in a much shorter time and create more integrated and
capable supply chain.
 c) To Implement Co-Makership Agreement (Vrijhoef, 1998):
The establishment of co-makership relationships between a main contractor,
subcontractors and direct suppliers is very well possible and could be rather beneficial in
IBS. The reduction of the number of direct suppliers and subcontractors will reduce the
span of control of a main contractor considerably. In theory, comakership focuses
attention on bilateral client-supplier relationships existing between two neighbouring
supply chain participants, particularly between an assembler and a supplier. Co-
makership aims to establish a long-term collaborative relationship in order to make
mutual efforts to reduce lead times, inventories, quality defects and total costs and
emphasises collaborative realisation and delivery of a product jointly by an assembler
and a supplier. Therefore, co-makership requires early, close and intensive involvement
of a supplier into an assembler’s processes and operations based on mutual trust,
commitment and support. Co-makership implies the transition of a supplier to become a
co-maker exceeding the level of an ordinary supplier who has to deliver along detailed
and prefixed specifications. Instead, a co-maker is involved actively in the design,
development and production of products. Therefore, it is important that a co-maker
achieves the status of most-favored supplier with high-standard capabilities. In order to
keep up that status, the assembler needs to acknowledge the responsibility to support
and develop the co-maker as it were its own business unit.
 d) To Utilise Information Technology (IT):
The advancement and explosion of Information Technology (IT) driven by the liberalisation of global
economies has also tremendously facilitated and improved the supply chain relationship with borderless
connectivity. Through the use of IT, companies enhance their collaborative activities, keep all parties up to
date regarding the progression of the project and also help in solving problems at site regarding the supply
chain. With the use of IT in supply chain, the industry can facilitates the information dissemination all along
the supply chain and this the chain itself can move as a coordinated entity to anticipate any problems and
contribute towards the completion of the project on time. The utilisation of Building Information Modelling
(BIM) should be encouraged. BIM is used throughout the design, delivery and lifecycle of the project to
manage coordination down to fabrication level detail. BIM improves accuracy and effectiveness of cost
control resulting from precise, real-time quantity management linked directly to project design and
fabrication information in the BIM process. Fully interconnected collaborative project teams with full-time,
real-time access to all information about project pro-forma, life cycle design, supply chain and mode of
delivery, can bring about improved supply chain. BIM also enables collaborative concurrent design which
improves communication between the project team and supply chain and enables enhanced modes of
innovation.
 Conclusion:
The current state of the supply chain in the construction industry is fragmented and
underpinned by poor communication, adverse relationships and lack of trust and
commitment and the relationship between parties has been driven by the cost
agenda. In addition to the above, the construction industry possesses a unique nature
where most of the construction projects are short term and non-repetitive. In differs
from manufacturing and automotive industry in which routine task are commonplace.
There is evidence that the supply chain in IBS requires close control of materials and
resource delivery. The case studies show that this is important to ensure continuity
and timely delivery of construction components at site.
As a result, the case companies involved heavily in the production of IBS components
and practices closed supply chain. The supply chain is managed in a manner that allows
them to have full control of the process with the intention to improve efficiencies and
competitiveness.
As the way forward, suggests contractors to adopt partnering initiatives and embrace
open collaborative environment to be competitive. In addition, Information
Technology (IT) tools such as Building Information Modeling (BIM) can be useful to
support collaborative supply chain and improve information flows.
 NEXT WEEK AGENDA 7/11/2017: CHAPTER 2
TITLE : INDUSTRIALISED BUILDING SYSTEM (IBS):
ISSUES & PROBLEMS – EFFECTIVENESS OF IBS
IMPLEMENTATION FOR MALAYSIAN
CONSTRUCTION INDUSTRY.
8.00 am to 9.30 am: Forum (Another 6 groups
student’s), 1 Moderator
9.30 am-10.00 am Lecture.
 TWO WAYS COMMUNICATION’S (FORUM)
CHAPTER 2
TITLE : INDUSTRIALISED BUILDING SYSTEM (IBS): ISSUES
& PROBLEMS – EFFECTIVENESS OF IBS IMPLEMENTATION
FOR MALAYSIAN CONSTRUCTION INDUSTRY.
DISCUSS AND PRESENT.
Creat 6 groups (1 group 10 Students)
1. DOING LITERATURE REVIEW (FROM WEBSITE/JOURNAL) –
& DISCUSS IN GROUPS (30 MINUTES),
3. SELECT ONLY 1 STUDENT FROM 6 GROUPS (1X6 =6 Student’s) TO PRESENT &
DISCUSS IN FORUM FORMAT (WITH 1 MODERATOR), ONLY 1 SESSION (45
MINUTES).
 1. GROUP’S ASSINGMENT 2
1 GROUP ONLY 5 STUDENT’S X 16 GROUPS = 80 STUDENT’S

QUESTION: OVERVIEW AND ANALYZE all the success factors of implementation of

Industrialised Building System (IBS) or Modern Method Construction (MMC) at United
Kingdom (UK), Japan and Australia, or any western countries.
Must support with data, statistic and photo's.
Carry Marks: 5%
START DATE 3/11/2016.
DUE DATE : 17/11/2016 (2 WEEKS), submission in class.
……………………………………………………………………………………
…………………………………………………………
2. POWER POINT PRESENTATION 16 GROUP’S (ASSINGMENT)
1 GROUP ONLY 5 STUDENT’S X 16 GROUPS = 80 STUDENT’S
Presentation every Group’s only 10 Minute's. (Date : will identified)
1 Chairman.
Dr.Hj.Umar Bin Hj.Kassim –PPKAS Nov 2016